GTS Blog

Big data is a buzzword that picked up recognition in the marketing space and has made its way into the business models of companies around the world. It’s a term that simply refers to data sets that are too large to quantify using traditional on-hand data management tools.

Logistics is particularly suited to benefit from big data. Why? Because when it comes to the supply chain, success depends on efficiency. There is a chain of commands that need to be met, and this is best done when transparent information is accessible.

DHL published a study called Big Data in Logistics, and pointed out five areas of logistics that big data has the biggest effect. They include:

It’s been said that failing to plan is planning to fail, and that rings entirely true for annual budgeting. One of the smartest things a company can do is accurately forecast spending; this includes logistics expenditures.

According to Inbound Logistics, the ideal time to start budgeting is 10 months into your fiscal year.

The ability to effectively manage your supply chain has a direct impact on the organization’s bottom line and market share. With new customer demands and advances in technology, businesses must have visibility into their processes to ensure products are being delivered and meeting customer’s expectations, all while reducing costs. Likewise, the increasing complexity of today’s supply chains has made it more difficult to monitor and control related tools, activities, and procedures. By achieving visibility, managers can more effectively identify and manage risks in the supply chain and respond to customer demands and other complexities in real time. However, this is easier said than done.

Today’s cloud based technologies are transforming supply chains in all industries. Large and small companies are deriving benefits from supply chain analytics because it enables the process to be streamlined and lower costs that often results from faster fulfillment times and fewer inventory problems. In recent findings, the Gartner survey of supply chain strategists found 29% of organizations said they have achieved high levels of ROI by using analytics. Firms are utilizing the analytics to manage pricing, leverage visibility, reduce costs, and consolidate.

Tracking key performance indicators (KPI’s) will help you know which carriers are keeping you on course to profitability. Using a scorecard that measures carrier performance promotes better dialog and provides a quantifiable way to measure the success of the relationship between all parties involved.

While some people might disagree that the point of business is to make a profit, we can all agree that businesses need to make a profit if they desire to become self-sustaining. This is especially true for small- to mid-sized businesses (SMBs.)